Boosted by Gen-AI Services, Consumers Spent More Money in Apps than Games for First Time
SAN FRANCISCO, Jan. 21, 2026 /PRNewswire/ -- Sensor Tower, a leading provider of data on the digital economy, today released its annual State of Mobile report for 2026. The report reveals that in 2025 in-app purchases (IAP) reached $167 billion globally, an increase of 10% year-over-year (YoY). Bolstered by Generative AI services, IAP revenue from non-gaming apps surpassed games for the first time, representing a 21% YoY increase and nearly three times the amount spent just five years earlier.
Sensor Tower's findings reveal that global consumers are connected to their phones more than ever, spending 5.3 trillion hours on apps in 2025. Further, while games continue to represent a major part of both time spent and in-app purchase revenue, data shows that games are increasingly competing with social, short form drama, and AI apps. The latter two categories stood out as outliers in 2025, posting exceptional download growth of 278% and 148% YoY, respectively.
"Over the past few years we have observed increasing revenue growth for apps outside the gaming category, as Entertainment, Lifestyle, and Productivity Services have launched new ways to offer consumers premium experiences," said Oliver Yeh, Chief Executive Officer and Co-founder of Sensor Tower. "This has primed the market for Gen AI apps, which not only saw mass adoption, but also experienced significant revenue growth. ChatGPT was the third-highest grossing app of 2025 behind TikTok and Google One, signaling a decisive shift in both consumer spend and attention."
While Gen AI apps are making waves in the mobile market, Social Media, Streaming Movies and TV Shows, and Dating remain the largest sources of IAP revenue among non-games. Time spent on social media apps continued to increase in 2025, with nearly 2.5 Trillion combined hours spent on social platforms, far outpacing any other category. Many of the fastest growing categories connect users across devices or to their in-person experiences.
More key findings include:
- Gaming Continues Shift From Scale To Efficiency: With UA costs elevated, winners sustained growth by improving unit economics via deeper monetization and live ops discipline, supported by high-attention ad formats.
- Finance App Trends Reveal a Changing Mobile Climate: Credit and Lending apps saw downloads climb 18% YoY, offsetting a substantive decline in Investing & Financial Management and Cryptocurrency apps.
- Tariffs and AI Reshape Mobile Retail: Global downloads and time spent in retail apps declined in 2025, due in part to the slowing expansion of major global players like Temu and SHEIN. Top retailers are also exploring the impact of AI on shopping, from optimizing product recommendations via AI assistants to launching AI shopping tools, such as Amazon's Rufus and Walmart's Sparky.
- Food Delivery Apps Surge Past Pandemic Peak: Restaurant and Food Delivery apps saw 14% growth YoY, with Uber Eats capturing advertising investment from 15 of the top 20 Quick Service Restaurant (QSR) brands to increase their reach.
- Sports Betting Apps Capture Attention Worldwide: In the US, user acquisition for sports betting apps remained stable in 2025, while time spent increased by 7% YoY. Globally, downloads for sports betting apps increased 24% YoY as it launched in new markets like Brazil, while fantasy sports apps fueled growth in India.
About Sensor Tower
Sensor Tower is a global provider of digital intelligence solutions, empowering companies to understand consumer behavior and market performance across mobile apps, digital platforms, and gaming ecosystems. Headquartered in San Francisco, Sensor Tower's insights are trusted by more than 2,500 enterprises worldwide.
For more information visit sensortower.com.
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